why is everyone so anti consolidation?

debtfree1day

they declined me....im with Retail eyes, and GFK only

wish i was with ret maxim, heard they r good

lisa

frosty

I have learnt such alot since joining this site,we have taken out a loan to repay all our debt.I have cancelled all cards as they have been paid off and we will not be having anymore.
I shopped around and found a loan for 6.3%.
We now have one payment a month going out on debt instead of 6 payments to credit cards.
We have both opened savings accounts,we have stopped going out,we dont buy takeaways ect,every penny we can earn or find goes into the savings account and the aim is to pay the loan off as soon as possible.
I had my lightbulb moment about 18 months ago and have been paying off our debts in that time.Things are a lot easier when you have just one debt payment going out each month.But you have to be very strict and very careful not to start spending again.I find reading the dfw thread keeps us focused.

lynzpower

On thing that bothers me greatly OP is that you will have to convert to the SVR.

This is going to be rising agian at least once before August and will be at least 6% by the end of the year. I *think* ( only my opinion) we can expect 6.5 by the end of the year, as the heat is not coming out of the economy quick enough with these increases.

Have you factored in how much your costs can rise?

have you thought about going into an IVA? At least with an IVA your outgoings will reduce ( by reducing interest, reducing terms) as opposed to increasing wit hthe additional loans interest plus fees, charges and so forth.

I would be more inclined to choose IVA, DMP or bankrupcy over secured consolidation to be frank. It just seems like you have to pay out LAODS more for the same effect?

FirstTimer4Me

lynzpower wrote: »

have you thought about going into an IVA? At least with an IVA your outgoings will reduce ( by reducing interest, reducing terms) as opposed to increasing wit hthe additional loans interest plus fees, charges and so forth.

I would be more inclined to choose IVA, DMP or bankrupcy over secured consolidation to be frank. It just seems like you have to pay out LAODS more for the same effect?

Hi

I don't want to hijack the thread, but can someone please explain the differences between IVA, Bankruptcy, and DMP.

Thanks in advance

shamu95

Hi- just one thing that doesnt appear to be mentione here is that most secured loans are on avariable rate and this truly stung me as my payments forever kept going up yet my earnings didnt so straight back to square one.

thumperstewart

It only solves the problem in the short term, consolidation allows you to run up more debts. Change your habits (what got you into that debt in the first place) that will solve the long term problem and change your life for the better

lynzpower

heres the info on IVAs from national debtline http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=26_individual_voluntary_arrangements

DMPs http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=29_debt_management_plan

bankrupcy http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=01_bankruptcy

HTH

blackangeluk

Hi, just wanted to endorse what someone posted about additional charges being SVR. Prior to being DFW I just borrowed the money and ran, we have a second charge and the cost keeps going up - fortunately it is not a large amount as if it was it would be enough to cripple us.

I think you have to do what is right for you but you need to carefully consider the risk of securing all debt on your house.

Good luck whatever you decide.

debtfree1day

Thatnks for all your advice

THE SVR element of the loan, would not be SVR for more than 4 wks, as once on the loan, we would have option to poay for a product - about £495 of fees to move to fixed rate or some kind of dicount / then variable

Again more debt though......................

debtfree1day

Lynz

Thanks for the links. The IVA is scary for me. Particulkarly as if circumstances change you might had to start again / re negotiaste , and still end up bankrupt.........

Even though right now everything we owe including mortgage is greater than assets I dont think Bankruptcy is the answer, as have family with 4 children who are settled, and the upheaval would be significant.

Think the DMP is a sensible way forward, especially if I could negotiate reduced or frozen interest.......

would I be better to try and do this myself OR via one of the organisations on here?

Cheers

Lisa